Kirton denies Houston's insurance led to quitting

Ruapehu Bulletin, Volume 14, Issue 681, 8 April 1997, Page 1

Kirton denies Houston's insurance led to quitting

Allegations made in the Waikato Times on Thursday last week regarding the vehicle insurances and resignation of Ruapehu District Council chief executive Cliff Houston are "totally incorrect", claims mayor Weston Kirton. "The article indicates that Council has "footed the bill" for the chief executive' s private cars. This is totally incorrect," said Mr Kirton. Mr Houston paid all premiums for the cover and any excess claims which were required. The cover has not resulted in any additional cost for the council, stated Mr Kirton. "At the council meeting held on Thursday 27 March 1997 councillors

reviewed all the facts of the issue and agreed that there was absolutely no fraudulent activity involvedon the part of Mr Houston. The council did not ask Mr Houston to resign and the insurance issue had not threatened his position with the council," said Mr Kirton Mr Kirton said that Mr Houston has served the council for eight hard years and has made an enormous contribution to the district. "It is a pity that innuendo and misinformation has been given significance when we should be focusing on the positive work he has done for the community". Turn to Page 2

Kirton denies Houston's insurance led to quitting

FROM PAGE 1 "I am also disappointed that a confidential personal matter discussed by the council, (Mr Houston's resignation letter and payment of $30,000 in lieu of notice) at the meeting with the public excluded has been given to the Waikato Times," said Mr Kirton. The Bulletin has been informed that the matter of Mr Houston's insurance came about from an earlier arrangement whereby staff who used their own cars for council business were allowed to arrange cover through the council' s insurers, and thereby pay cheaper premiums. The arrangement was discontinued after it became "messy", but Mr Houston continued with his own vehicles, although still paying the premiums himself, the Bulletin was informed. The Bulletin understands that at the emergency meeting Mr Houston first asked the coun- | cil to accept his resignation because of the insurance matter.

The letter, leaked to the Waikato Times and reported on by ex-Taumarunui journalist MaryAnne Gill, read: "It is with regret I tender my resignation as chief executive of the council. The recent publicity regarding the insurance of my private motor vehicle has caused the council embarrassment and has affected my own personal credibility although I stress there has been no wrong doing on my part. "With the benefit of 20-20 hindsight I should have removed my personal vehicles from the schedule when the council first provided me with a car but it seemed convenient at the time just to let the arrangement continue. This was clearly an error of judgement on my part for which I appologise. "For a high standard to be maintained the course of action I am now taking is appropriate for the circumstances." But the councillors did not accept his resigna-

tion because of the insurance issue, but after further information on why he wanted to resign, Mr Kirton told the Bulletin. Mr Houston was not present at the meeting. Leak Asked if he thought a councillor had leaked the letter, Mr Kirton said it was possible but that he did not want to speculate on the matter. Mr Kirton said the council was now formulating a policy on such matters as insurance for staff. He said previously there was no policy. While he said he could understand why people were shocked at the $30,000 golden handshake to Mr Houston, he said this was not an unusual amount in such cases. He said all chief executive packages for large organisations contain such "exit packages". "I' m not saying I agree with it, but in the arena of appointing chief executives you agree to that sort of system or you don't get them," said Mr Kirton.